All states and Union territories in India, except Kerala and West Bengal, have initiated the process of implementing the four new labour codes, according to a Ministry of Labour and Employment official. The codes, which consolidate 29 archaic labour laws into a streamlined regulatory framework, were notified by the central government and operationalised from November 21 last year.
States in Advanced Stages
Uttar Pradesh and Madhya Pradesh are in advanced stages of notifying their rules under the codes. Karnataka has already notified rules under the Code on Wages and the Industrial Relations Code. Gujarat is the first state to notify final rules under all four codes, making it a de facto testing ground for the new regime. Under Gujarat's Code on Wages rules, minimum wages are divided into three geographical zones—metropolitan, municipal corporation, and rural areas—with rates varying by skill levels. The revision cycle is set at five years with annual variable dearness allowance adjustments. Employers must maintain electronic registers and make them available for inspection through the state's online portal.
Kerala and West Bengal Hold Back
“Barring Kerala and West Bengal, all states are in the process of implementing the rules. The Congress-led Kerala government has sought more time as it is still studying certain aspects of the codes. Another state is West Bengal, which is yet to notify or publish draft rules,” a Ministry of Labour and Employment official told The Tribune. “Both states, under the Left and Trinamool Congress regimes, had opposed the rules. With the change in regime, we hope they will soon implement this people-friendly legislation,” the official added.
Diverse State Approaches
Maharashtra, India's largest industrial state by GDP and factory count, has retained a more complex compliance landscape. Its contract labour regime has specific threshold requirements that differ from the central framework. The state's minimum wage structure is among the most complex in India, with rates varying by industry, zone, and skill level across more than 40 scheduled employments.
Tamil Nadu has a distinctive labour law landscape shaped by its strong trade union movement and significant plantation sector. The state's minimum wage zone structure follows a district-based classification rather than the metropolitan/non-metropolitan model used by Gujarat. Its industrial dispute resolution mechanism has historically been among the fastest in India, with labour courts and industrial tribunals maintaining relatively current dockets.
Gig Worker Protections
Some states have introduced separate legislation for emerging forms of employment. Rajasthan and Karnataka, for instance, have enacted laws to protect and regulate platform-based gig workers. This reflects the evolving nature of work and the need for tailored regulations beyond the four labour codes.
Central Rules and Transition
The Ministry of Labour and Employment notified the central rules under all four labour codes on May 8 to 9, and the codes themselves were operationalised from November 21 last year. Until a state notifies fresh rules, employers will continue to follow the central rules together with the legacy state labour rules and transitional notifications. The four codes—the Code on Wages, Industrial Relations Code, Code on Social Security, and Occupational Safety, Health and Working Conditions (OSH) Code—aim to simplify compliance, enhance social security coverage, and improve ease of doing business while protecting worker rights.
